September 7, 2006

Lehman Brothers 20th AnnualEnergy Conference

Moray DewhurstChief Financial Officer

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Non-Solicitation This communication is not a solicitation of a proxy from any security holder of FPL Group, Inc. (“FPL Group”) or Constellation Energy Group, Inc. (“Constellation Energy”). Constellation Energy has filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 (Registration No. 333-135278) that includes a preliminary joint proxy statement/prospectus of Constellation Energy and FPL Group. Once finalized, a definitive joint proxy statement/prospectus will be sent to security holders of FPL Group and Constellation Energy seeking approval of the proposed transaction. WE URGE INVESTORS TO READ THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT FPL GROUP, CONSTELLATION ENERGY AND THE PROPOSED TRANSACTION. Investors are able to obtain these materials (as they become available) and other documents filed with the SEC free of charge at the SEC's website, www.sec.gov. In addition, a copy of the definitive joint proxy statement/prospectus (when it becomes available) may be obtained free of charge from FPL Group, 700 Universe Blvd., Juno Beach, FL 33408, Attention: Investor Relations, or from Constellation Energy, Shareholder Services, 750 East Pratt St., Baltimore, MD 21202.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there by any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

FPL Group, Constellation Energy and their respective directors and executive officers and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding FPL Group’s and Constellation Energy’s directors and executive officers is available in the preliminary joint proxy statement/prospectus that Constellation Energy has filed with the SEC in connection with the proposed merger. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is also contained in the preliminary joint proxy statement/prospectus filed by Constellation Energy and will be contained in other relevant materials to be filed with the SEC.

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Cautionary Statements And Risk Factors That May Affect Future Results

Any statements made herein about future operating results or other future events are forward-looking statements under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, for example, statements regarding anticipated future financial and operating performance and results, including estimates for growth, benefits of the proposed merger between FPL Group and Constellation Energy, the likelihood and timing of the closing of the proposed merger, integration plans and expected synergies. Actual results may differ materially from such forward-looking statements. A discussion of factors that could cause actual results or events to vary is contained in the Appendix herein and in our SEC filings.

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FPL Group: Fall 2006 Overview• Regulatory clarity and positive outlook at FPL

– positioned for continued success– storm cost recovery on track

• Favorable environment for FPL Energy– continued wind development– roll-off of hedges at incrementally higher prices– recent portfolio additions (e.g., solar, nuclear)

• Expect compound annual EPS growth of 9-10% through end of decade1

– composition of growth is transparent– assumes reasonable wind development and no incremental asset acquisitions

• Financial strength and flexibility• Pending stock-for-stock merger with Constellation Energy Group

1 Assumes normal weather and excludes: the cumulative effect of adopting new accounting standards; the mark-to-market effect of non-qualifying hedges; and, merger-related costs, none of which can be determined at this time. EPS growth assumes FPL Group as a standalone entity.

5

Adjusted Earnings Per Share Expectations

2006E1 2007E1

Prior expectations: $2.80 – $2.90 $3.15 – $3.35

Current view: Likely at high end of range (including

storm disallowance)

Current drivers support upper-half

of range

Note: the 2006 and 2007 adjusted earnings expectations are valid as of today (September 7, 2006) and should be viewed in conjunction with the Company’s Cautionary Statements contained in the Appendix to this presentation.

1 Assumes normal weather and excludes: the cumulative effect of adopting new accounting standards; the mark-to-market effect of non-qualifying hedges; and, merger-related costs, none of which can be determined at this time. EPS growth assumes FPL Group as a standalone entity.

Consolidated FPL Group

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FPL Group

FPL FPL Energy

• $17.4 billion market capitalization

• $33.8 billion in total assets

• 33,756 mw in operation

• $11.8 billion operating revenue

• One of the largest U.S. electric utilities• Vertically integrated, retail rate- regulated utility• 20,777 mw in operation• 4.4 million customers• $9.5 billion operating revenue

• Successful competitive energy supplier, operating in 24 states

• U.S. market leader in wind-generation

• 12,979 mw in operation• $2.2 billion operating revenue

A Growing, Diversified Company

Operating revenues as of 12/31/05; market capitalization data as of 8/30/06; mw data as of 7/31/06; all other data as of 6/30/06

8

Florida Power & Light – update through August 2006

• 2006 YTD generally in line with expectations– customer growth slightly behind– weather slightly below normal– exception: Storm SecureSM (2007+ impact)

• Regulatory clarity– new base rate agreement 1/06 – 12/09– storm cost recovery approved– securitization process underway

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Florida Power & Light – Focus on 2007

• 2007 Fuel Filing– filed September 1, November decision – expect minor positive impact on retail prices

• Revenue outlook– expect continued, moderate customer growth– return to modest usage growth

• Cost outlook– primary driver will be Storm SecureSM

– productivity initiatives elsewhere

• Turkey Point 5– on schedule, on budget– positive impact for customers and shareholders

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FPL Energy• Well diversified by fuel source and by region• Wind and nuclear continue to build substantial value

– PTC extension supports continued and consistent wind development – acquisition of 70% interest in Duane Arnold completed January 2006– Seabrook uprate

• Commodity market remains robust– expiring contracts renewing at higher margins

• Potential new portfolio additions • Strengthening outlook for 2007 and beyond

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FPL Energy has an attractive portfolio mix with unique strength in wind

Segment MW %

Capital Employed %

Economic

Value Proposition

Wind 4,016 30% $3,202 40% Primarily long-term contract, plus terminal value

QF/Contract 2,461 18% $1,229 15% Long-term contract with variable merchant tail

New England 2,671 20% $1,540 19% Actively managed hedged positions, plus modest full requirements short positions

Texas 2,700 20% $1,074 13% As New England, plus modest retail short position

Other 1,472 12% $1,017 13% Minor asset and full requirements positions

TOTAL 13,320 $8,082

FPL Energy 2006 Portfolio Mix

Note: Based on June 2006 forecast. Capital employed is calculated as follows: Consolidated projects = equity + debt; non-consolidated projects = investment balance. Texas includes Gexa. All $ figures in millions.

13

U.S. leader in wind energy

18%

22%

33%

37%

43%41%

35%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

99 00 01 02 03 04 05 06 07

mw

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

FP

L E

ner

gy

Mar

ket

Sh

are

Industry FPL Energy Market Share

Wind Generation Market Share

FPL Energy Wind Generation

4,700 +~ 4,000

3,1922,758

2,720

1,7451,421

578460

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

99 00 01 02 03 04 05 06E 07E

mw

1 Assumes approximately 750 mw of new wind development in 2006 and 2007

11

?

14

The wind business contributes disproportionately to the FPL Energy portfolio

FPL Energy Adjusted Earnings Mix 1

34%

50%35%27%

Allocation of adjusted earnings includes G&A allocation based upon MW’s and interest expense based on 50/50 debt/equity structure. 2006P based on a range of $375-450 million.

1 See Appendix for reconciliation of GAAP to adjusted earnings. 2006 (P) assumes normal

weather and excludes the cumulative effect of adopting new accounting standards and the mark-to-market effect of non-qualifying hedges, none of which can be determined at this time.

Windvs.All

Other

% Wind

35 – 37%

15

The risk profile of wind is also attractive

• Short development and construction cycles

• Front-loaded cash flow profile• “Tolerant” operational risk• Customer credit• Resource variability

Wind Risk Characteristics

Wind

Rest of

Portfolio Total

Capital

Employed

$3.240%

$4.960%

$8.1

Non- or limited recourse debt

$2.0 83%

$0.417%

$2.4

Financing 1 ($ billions)

1 2006P forecast.

16

Our view of the FPL Group risk-reward profile

Wind

NewEngland

QF/Contract

FloridaPower & Light

Risk

Reward

Low

High

Texas

Other

1.0

1.0

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Where does wind rank in the valuation scale?

QUARTILE

1st 2nd 3rd 4th

Nuclear $2,126 $1,961 $1,811 $1,582

Hydro $2,023 $1,508 $977 $293

Coal $1,627 $1,489 $1,041 $227

Gas CC $741 $196 $155 NM

Gas Peakers

$319 $42 NM NM

Wind ~ $2,000 ~ $1,600 ~ $1,200 ~ $800

August 1, 2006 Lehman Research Report$/kw

Lehman Brothers

FPL Groupview

August 1, 2006 Lehman research report entitled “The Cheaper IPP” by Dan Ford and team. Used with permission

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Wind projects conservatively create 15 to 40 cents of value per dollar invested

Duration (yrs)

20 25 30

+ 2 0.15 0.18 0.19

+ 4 0.31 0.36 0.40

Typical Wind Project Valuation- Value created per dollar invested -

Spread overCost of Capital

Assumptions: Annuity cash flow streams; zero terminal value; base discount rate of 8%

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What is FPL Energy worth? An end of 2006 view….

Portfolio

Element Quartile mw $/kW

Implied

Enterprise Value

Wind 1 934 $2,023 $1,888

Wind 2 2,669 $1,508 $4,025

Wind 3 328 $ 977 $ 320

Wind 4 86 $ 293 $ 25

Nuclear 1 1,519 $2,126 $3,229

Hydro 1 361 $2,023 $ 730

Gas CC 1 4,997 $ 741 $3,702

Gas CC 2 556 $ 196 $ 109

Peakers 1 949 $ 319 $ 303

Peakers 2 50 $ 196 $ 10

All other 872 $ 435 $ 380

TOTAL 13,320 $14,271

FPL Energy Valuation Analysis: Year-end 2006P

Based on table from Slide 17, with hydro values applied to wind projects. MW figures may not total due to rounding. All $ figures in millions unless noted otherwise

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FPL Energy: Growth Profile, 2007Growth Drivers Description Net Income Impact 1

New wind development

750 + mw in 2006

750 + mw in 2007

$75 – 85 million

Roll-off of hedges Re-hedging at current forward prices

$110 – 120 million

Market cycles Spark spread expansion; capacity values

$20 – 25 million

Expansion of PM&T

Growth in full requirements, gas optimization, retail

$5 – 10 million

New investment Incremental wind, nuclear, fossil expansion, potential new solar development

????

1 Does not reflect G&A, interest or other potential offsets

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FPL Energy’s growth profile supports an attractive value proposition for FPL Group shareholders

FPL Group Implied Valuation- 12/06 Basis -

Enterprise Value

FPL Energy (from prior slide, pg. 19) $14 – 15

FPL @ 15-16x 2006 earnings $17 – 19

Less: net debt ($12)

Implied equity value $19 – 22

$ / share $48 – 56

All $ figures shown in billions, except per share amounts

22

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• Merger creates new FORTUNE 100 company and U.S. market leader in competitive energy markets

• Well-matched, complementary contributions from two strong companies create a balanced footprint

• Multiple channels of growth, balanced by solid base of stable, growing earnings and cash flow from two excellent state-regulated utilities

• Combined company will have one of the strongest balance sheets in the industry

• Remain confident that pre-tax synergies of at least $200-250 million per year by year 3 retained for shareholders is attainable

Proposed Merger Rationale

Constellation Energy FPL Group

- Highest load serving market share - Generation assets in NEPOOL and ERCOT

- Leading risk management expertise - Strong wind position

- Strong nuclear capability - Strong nuclear capability

- Focus on cost and operational efficiency - Focus on cost and operational efficiency

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Merger Update• Merger approval process continues forward

– Merger proxy filed with SEC on June 23, 2006; comments received on July 21. Amendment 1 filed August 28, 2006

– FERC decision no later than February 2, 2007– Expect Maryland approval process to be critical path to closing merger

• Implementation of BGE rate stabilization plan clears one obstacle for Maryland PSC to consider merger– Filed new merger application with the Maryland PSC in late July to

address new statutory standards of Senate Bill 1– PSC issued revised procedural schedule on August 23; final decision

slated for early February 2007• Uncertainty surrounding closing of the merger remains

– Integration activity remains on hold until companies have more clarity on timing and economics

– If risk to closing the merger or economics become unacceptable, Constellation Energy and FPL Group could agree to terminate merger

• FPL Group remains committed to the merger with Constellation but not at the expense of shareholder value

Appendix

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FPL Energy - Reconciliation GAAP to Adjusted Earnings

($ millions, except per share amounts) 2002 2003 2004 2005

Net income (Loss) (169)$ 194$ 172$ Adjustments, net of income tax:

Cumulative effect of change in accounting principle (FAS 142) 222

Restructuring and other charges 73 Cumulative effect of change in accounting principles (FIN 46) 3 Net unrealized mark-to-market losses (gains) associated

with non-qualifying hedges (22) 3 Adjusted Earnings 126$ 175$ 175$

187$

112299$

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In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (Reform Act), FPL Group, Inc. (FPL Group) and Florida Power & Light Company (FPL) are hereby providing cautionary statements identifying important factors that could cause FPL Group's or FPL's actual results to differ materially from those projected in forward-looking statements (as such term is defined in the Reform Act) made by or on behalf of FPL Group and FPL in this presentation, on their respective websites, in response to questions or otherwise. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as will likely result, are expected to, will continue, is anticipated, believe, could, estimated, may, plan, potential, projection, target, outlook) are not statements of historical facts and may be forward-looking. Forward-looking statements involve estimates, assumptions and uncertainties. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors (in addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements) that could cause FPL Group's or FPL's actual results to differ materially from those contained in forward-looking statements made by or on behalf of FPL Group and FPL.

Any forward-looking statement speaks only as of the date on which such statement is made, and FPL Group and FPL undertake no obligation to update any forward-looking statement to reflect events or circumstances, including unanticipated events, after the date on which such statement is made. New factors emerge from time to time and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

The following are some important factors that could have a significant impact on FPL Group's and FPL's operations and financial results, and could cause FPL Group's and FPL's actual results or outcomes to differ materially from those discussed in the forward-looking statements:

FPL Group and FPL are subject to complex laws and regulations and to changes in laws and regulations as well as changing governmental policies and regulatory actions, including initiatives regarding deregulation and restructuring of the energy industry.  FPL holds franchise agreements with local municipalities and counties, and must renegotiate expiring agreements.  These factors may have a negative impact on the business and results of operations of FPL Group and FPL.

•FPL Group and FPL are subject to complex laws and regulations, and to changes in laws or regulations, including the Public Utility Regulatory Policies Act of 1978, as amended, the Public Utility Holding Company Act of 2005, the Federal Power Act, the Atomic Energy Act of 1954, as amended, the Energy Policy Act of 2005 (2005 Energy Act) and certain sections of the Florida statutes relating to public utilities, changing governmental policies and regulatory actions, including those of the Federal Energy Regulatory Commission (FERC), the Florida Public Service Commission (FPSC) and the legislatures and utility commissions of other states in which FPL Group has operations, and the Nuclear Regulatory Commission (NRC), with respect to, among other things, allowed rates of return, industry and rate structure, operation of nuclear power facilities, operation and construction of plant facilities, operation and construction of transmission facilities, acquisition, disposal, depreciation and amortization of assets and facilities, recovery of fuel and purchased power costs, decommissioning costs, return on common equity and equity ratio limits, and present or prospective wholesale and retail competition (including but not limited to retail wheeling and transmission costs).  The FPSC has the authority to disallow recovery by FPL of any and all costs that it considers excessive or imprudently incurred.  The regulatory process generally restricts FPL's ability to grow earnings and does not provide any assurance as to achievement of earnings levels.

•FPL Group and FPL are subject to extensive federal, state and local environmental statutes as well as the effect of changes in or additions to applicable statutes, rules and regulations relating to air quality, water quality, waste management, wildlife mortality, natural resources and health and safety that could, among other things, restrict or limit the output of certain facilities or the use of certain fuels required for the production of electricity and/or require additional pollution control equipment and otherwise increase costs.  There are significant capital, operating and other costs associated with compliance with these environmental statutes, rules and regulations, and those costs could be even more significant in the future.

Cautionary Statements And Risk Factors That May Affect Future Results

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• FPL Group and FPL operate in a changing market environment influenced by various legislative and regulatory initiatives regarding deregulation, regulation or restructuring of the energy industry, including deregulation or restructuring of the production and sale of electricity.  FPL Group and its subsidiaries will need to adapt to these changes and may face increasing competitive pressure.

• FPL Group's and FPL's results of operations could be affected by FPL's ability to renegotiate franchise agreements with municipalities and counties in Florida.

The operation of power generation facilities, including nuclear facilities, involves significant risks that could adversely affect the results of operations and financial condition of FPL Group and FPL.

• The operation of power generation facilities involves many risks, including start up risks, breakdown or failure of equipment, transmission lines or pipelines, use of new technology, the dependence on a specific fuel source, including the supply and transportation of fuel, or the impact of unusual or adverse weather conditions (including natural disasters such as hurricanes), as well as the risk of performance below expected or contracted levels of output or efficiency.  This could result in lost revenues and/or increased expenses, including the requirement to purchase power in the market at potentially higher prices to meet its contractual obligations.  Insurance, warranties or performance guarantees may not cover any or all of the lost revenues or increased expenses, including the cost of replacement power.  In addition to these risks, FPL Group's and FPL's nuclear units face certain risks that are unique to the nuclear industry including the ability to store and/or dispose of spent nuclear fuel, the potential payment of significant retrospective insurance premiums, as well as additional regulatory actions up to and including shutdown of the units stemming from public safety concerns, whether at FPL Group's and FPL's plants, or at the plants of other nuclear operators.  Breakdown or failure of an operating facility of FPL Energy, LLC (FPL Energy) may prevent the facility from performing under applicable power sales agreements which, in certain situations, could result in termination of the agreement or incurring a liability for liquidated damages.

The construction of, and capital improvements to, power generation facilities involve substantial risks.  Should construction or capital improvement efforts be unsuccessful, the results of operations and financial condition of FPL Group and FPL could be adversely affected.

• FPL Group's and FPL's ability to successfully and timely complete their power generation facilities currently under construction, those projects yet to begin construction or capital improvements to existing facilities within established budgets is contingent upon many variables and subject to substantial risks.  Should any such efforts be unsuccessful, FPL Group and FPL could be subject to additional costs, termination payments under committed contracts, and/or the write-off of their investment in the project or improvement.

The use of derivative contracts by FPL Group and FPL in the normal course of business could result in financial losses that negatively impact the results of operations of FPL Group and FPL.

• FPL Group and FPL use derivative instruments, such as swaps, options and forwards to manage their commodity and financial market risks, and to a lesser extent, engage in limited trading activities.  FPL Group could recognize financial losses as a result of volatility in the market values of these contracts, or if a counterparty fails to perform.  In the absence of actively quoted market prices and pricing information from external sources, the valuation of these derivative instruments involves management's judgment or use of estimates.  As a result, changes in the underlying assumptions or use of alternative valuation methods could affect the reported fair value of these contracts.  In addition, FPL's use of such instruments could be subject to prudency challenges and if found imprudent, cost recovery could be disallowed by the FPSC.

FPL Group's competitive energy business is subject to risks, many of which are beyond the control of FPL Group, that may reduce the revenues and adversely impact the results of operations and financial condition of FPL Group.

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• There are other risks associated with FPL Group's competitive energy business.  In addition to risks discussed elsewhere, risk factors specifically affecting FPL Energy's success in competitive wholesale markets include the ability to efficiently develop and operate generating assets, the successful and timely completion of project restructuring activities, maintenance of the qualifying facility status of certain projects, the price and supply of fuel (including transportation), transmission constraints, competition from new sources of generation, excess generation capacity and demand for power.  There can be significant volatility in market prices for fuel and electricity, and there are other financial, counterparty and market risks that are beyond the control of FPL Energy.  FPL Energy's inability or failure to effectively hedge its assets or positions against changes in commodity prices, interest rates, counterparty credit risk or other risk measures could significantly impair FPL Group's future financial results.  In keeping with industry trends, a portion of FPL Energy's power generation facilities operate wholly or partially without long-term power purchase agreements.  As a result, power from these facilities is sold on the spot market or on a short-term contractual basis, which may affect the volatility of FPL Group's financial results.  In addition, FPL Energy's business depends upon transmission facilities owned and operated by others; if transmission is disrupted or capacity is inadequate or unavailable, FPL Energy's ability to sell and deliver its wholesale power may be limited.

FPL Group's ability to successfully identify, complete and integrate acquisitions, including the proposed merger with Constellation Energy Group, Inc. (Constellation Energy) is subject to significant risks, including the effect of increased competition for acquisitions resulting from the consolidation of the power industry.

• FPL Group is likely to encounter significant competition for acquisition opportunities that may become available as a result of the consolidation of the power industry, in general, as well as the passage of the 2005 Energy Act.  In addition, FPL Group may be unable to identify attractive acquisition opportunities at favorable prices and to successfully and timely complete and integrate them.

• FPL Group's ability to successfully complete and integrate the proposed merger between FPL Group and Constellation Energy is subject to certain risks and uncertainties including the ability to obtain governmental approvals of the transaction on the proposed terms, conditions and schedule; the failure of FPL Group or Constellation Energy's shareholders to approve the transaction; the risk that anticipated synergies will not be achieved or will take longer to achieve than expected; disruption from the transaction making it more difficult to maintain relationships with customers, employees, suppliers or governmental entities; unexpected transaction costs or liabilities; economic conditions; and other specific factors discussed in documents filed with the SEC by both FPL Group and Constellation Energy.  These risks, as well as other risks associated with the merger, are more fully discussed in the joint proxy statement/prospectus that is included in the Registration Statement on Form S-4 (Registration No. 333-135278) that Constellation Energy has filed with the SEC in connection with the proposed merger.

FPL Group’s proposed merger with Constellation Energy is subject to receipt of consents or approvals from governmental entities that could delay or prevent the completion of the merger or impose conditions that could have a material adverse effect on the combined company or that could cause abandonment of the merger.

• Completion of the merger is conditioned upon the receipt of consents, orders, approvals or clearances, as required, from the FERC, the NRC and the public service commissions or similar entities in several of the states in which Constellation Energy and/or FPL Group operate electric and/or gas businesses, including the state of Maryland.  Among other things, governmental entities could condition their approval of the merger upon Constellation Energy and/or FPL Group entering into agreements to restrict the operations of the combined businesses in accordance with specified business conduct rules, to divest generation facilities or to take other actions which governmental entities deem necessary or desirable in the public interest.  The terms of any such conditions that may be imposed, if any, are not known by FPL Group as of the date hereof.  If those approvals are not received, or they are not received on terms that satisfy the conditions set forth in the merger agreement, then neither Constellation Energy nor FPL Group will be required to complete the merger.  Recently adopted energy legislation in Maryland requires the appointment of a new group of commissioners at the Maryland Public Service Commission (MPSC) and directs the MPSC to complete a prompt and comprehensive review of the merger pursuant to new standards.  These changes have created additional uncertainty about the MPSC approval process and may result in substantial delay in the timing of required MPSC approval of the merger or the imposition of terms and conditions that are unfavorable to the combined company, such as a requirement to share expected merger savings with utility customers.  In addition, one lawsuit has been filed challenging the constitutionality of certain provisions of the new legislation, and additional lawsuits may be filed in the future. The outcome of such litigation and the additional uncertainty that could result cannot be predicted. A substantial delay in obtaining required approvals or the imposition of unfavorable terms or conditions in connection with such approvals could have a material adverse effect on the business, financial condition or results of operations of FPL Group or the combined company. In addition, delays or unfavorable terms could lead Constellation Energy or FPL Group to become involved in litigation with one or more governmental entities and/or may cause the abandonment of the merger.

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The anticipated benefits of combining FPL Group and Constellation Energy may not be realized.

• FPL Group entered into the merger agreement with the expectation that the merger would result in various benefits, including, among other things, synergies, cost savings and operating efficiencies.  Although FPL Group expects to achieve the anticipated benefits of the merger, including the synergies, achieving them is subject to a number of uncertainties, including:

- the ability of the two companies to combine certain of their operations or take advantage of expected growth opportunities;- whether the governmental entities whose approval is required to complete the merger impose conditions on the merger or require the combined company to share a portion of such merger benefits, from both the utility and competitive energy businesses, with utility customers, any of which may have an adverse effect on the combined company; and- general competitive factors in the marketplace.

No assurance can be given that these benefits will be achieved, or if achieved, the timing of their achievement.  Failure to achieve these anticipated benefits could result in increased costs and decreases in the amount of expected revenues of the combined company.

• In addition, Constellation Energy’s business involves certain risks which are different from the risks of FPL Group’s current business, and as a result the combined company may be exposed to competitive, regulatory, operational and other challenges that do not affect FPL Group’s businesses to a similar extent.

FPL Group and FPL will be subject to business uncertainties and contractual restrictions while the merger is pending that could adversely affect their businesses.

• Uncertainty about the effect of the merger on employees and customers may have an adverse effect on FPL Group and FPL, regardless of whether the merger is eventually completed.  Although FPL Group and FPL have taken steps designed to reduce any adverse effects, these uncertainties may impair FPL Group’s and FPL's ability to attract, retain and motivate key personnel until the merger is completed, or the merger agreement is terminated, and for a period of time thereafter. These uncertainties also could cause customers, suppliers and others that deal with FPL Group and FPL to seek to change existing business relationships with FPL Group and FPL.

• Employee retention and recruitment may be particularly challenging during the pendency of the merger, as employees and prospective employees may be uncertain about their future roles with the combined company.  If, despite FPL Group’s and FPL's retention and recruiting efforts, key employees depart or fail to accept employment with either of the companies because of issues relating to the uncertainty and difficulty of integration or a desire not to remain with the combined company, FPL Group’s, FPL's or the combined company’s business could be seriously harmed.

• The pursuit of the merger and the preparation for the integration of Constellation Energy and FPL Group place a significant burden on management and internal resources.  The diversion of management attention away from day-to-day business concerns and any difficulties encountered in the transition and integration process could harm FPL Group’s and FPL's businesses, financial condition and operating results, regardless of whether the merger is eventually completed.

• In addition, the merger agreement restricts FPL Group and FPL, without Constellation Energy’s consent, from making certain acquisitions and taking other specified actions until the merger occurs or the merger agreement terminates.  These restrictions may prevent FPL Group and FPL from pursuing otherwise attractive business opportunities and making other changes to their businesses prior to completion of the merger or termination of the merger agreement.

Because FPL Group and FPL rely on access to capital markets, the inability to maintain current credit ratings and access capital markets on favorable terms may limit the ability of FPL Group and FPL to grow their businesses and would likely increase interest costs.

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• FPL Group and FPL rely on access to capital markets as a significant source of liquidity for capital requirements not satisfied by operating cash flows.  The inability of FPL Group, FPL Group Capital Inc. and FPL to maintain their current credit ratings could affect their ability to raise capital on favorable terms, particularly during times of uncertainty in the capital markets, which, in turn, could impact FPL Group's and FPL's ability to grow their businesses and would likely increase their interest costs.

Customer growth in FPL's service area affects FPL Group's results of operations.

• FPL Group's results of operations are affected by the growth in customer accounts in FPL's service area.  Customer growth can be affected by population growth as well as economic factors in Florida, including job and income growth, housing starts and new home prices.  Customer growth directly influences the demand for electricity and the need for additional power generation and power delivery facilities at FPL.

Weather affects FPL Group's and FPL's results of operations.

• FPL Group's and FPL's results of operations are affected by changes in the weather.  Weather conditions directly influence the demand for electricity and natural gas and affect the price of energy commodities, and can affect the production of electricity at wind and hydro-powered facilities.  FPL Group's and FPL's results of operations can be affected by the impact of severe weather which can be destructive, causing outages and/or property damage, may affect fuel supply, and could require additional costs to be incurred.  At FPL, recovery of these costs is subject to FPSC approval.

FPL Group and FPL are subject to costs and other effects of legal proceedings as well as changes in or additions to applicable tax laws, rates or policies, rates of inflation, accounting standards, securities laws and corporate governance requirements.

• FPL Group and FPL are subject to costs and other effects of legal and administrative proceedings, settlements, investigations and claims, as well as the effect of new, or changes in, tax laws, rates or policies, rates of inflation, accounting standards, securities laws and corporate governance requirements.

Threats of terrorism and catastrophic events that could result from terrorism may impact the operations of FPL Group and FPL in unpredictable ways.

• FPL Group and FPL are subject to direct and indirect effects of terrorist threats and activities.  Generation and transmission facilities, in general, have been identified as potential targets.  The effects of terrorist threats and activities include, among other things, terrorist actions or responses to such actions or threats, the inability to generate, purchase or transmit power, the risk of a significant slowdown in growth or a decline in the U.S. economy, delay in economic recovery in the U.S., and the increased cost and adequacy of security and insurance.

The ability of FPL Group and FPL to obtain insurance and the terms of any available insurance coverage could be affected by national, state or local events and company-specific events.

• FPL Group's and FPL's ability to obtain insurance, and the cost of and coverage provided by such insurance, could be affected by national, state or local events as well as company-specific events.

FPL Group and FPL are subject to employee workforce factors that could affect the businesses and financial condition of FPL Group and FPL.

• FPL Group and FPL are subject to employee workforce factors, including loss or retirement of key executives, availability of qualified personnel, collective bargaining agreements with union employees and work stoppage that could affect the businesses and financial condition of FPL Group and FPL.

The risks described herein are not the only risks facing FPL Group and FPL.  Additional risks and uncertainties not currently known to FPL Group or FPL, or that are currently deemed to be immaterial, also may materially adversely affect FPL Group's or FPL's business, financial condition and/or future operating results.

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